Taking Stock: Weak global cues drag Nifty below 15,150, Sensex falls 379 points
Broader markets outperformed the benchmarks, with BSE midcap and smallcap indices adding 0.6 percent each.... Read More
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 85,231.92 | -400.76 | -0.47% |
| Nifty 50 | 26,068.15 | -124.00 | -0.47% |
| Nifty Bank | 58,867.70 | -480.00 | -0.81% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Maruti Suzuki | 15,977.00 | 176.00 | +1.11% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Hindalco | 777.70 | -22.10 | -2.76% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty FMCG | 55504.70 | 78.00 | +0.14% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Metal | 10142.50 | -243.50 | -2.34% |
The Nifty witnessed selling pressure for the third consecutive session. On the hourly chart it breached the junction of 40 hour exponential moving average & the hourly lower Bollinger Band, which is a crucial near term support zone. This is a sign of weakness in the near term. Also the daily momentum indicator has turned in favor of the bears. Thus the index seems to have stepped into a consolidation phase. 15,000 – 15,430 will be the range for the consolidation. However if the level of 15,000 is breached on closing basis then the index will be poised for a deeper correction.
This was a truncated week, and USDINR spot remained quiet, waiting for more cues. The focus will return to prospects of US stimulus and its impact on US yields. The rising yields are putting positive pressure on dollar index and in turn on USDINR spot, but the uptrend will be limited as traders need more proof that the US economy is getting in a better conditions. While, the optimism over additional stimulus will keep the spot below the psychological level of 73 zone. However, RBI intervention will be eyed. We expect the trading range to be in between 72.40-73.
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One more negative session witnessed on the street as the index closed at 15,117 with loss of 0.60 percent and formed a bearish candle for a third consecutive session on the daily chart. Index consecutively breaking every support and now final strong support is placed at 15k mark and any close below said levels can push the index to more dipper level of 14,750 zone. The strong resistance is coming near 15,250 and fresh upside-only possible if index managed to sustain above 15,250 zone.
While Indices ended in the red on Thursday, the under ownership in PSU stocks was evident today also as several of them across sectors posted smart gains. The PSU bank index which rose 6% yesterday recorded huge gains for the second day in a row led by privatisation hopes. In the broader market, Non-Life Insurers & Paper stocks saw keen interest among investors.
While Indices ended in the red on Thursday, the under ownership in PSU stocks was evident today also as several of them across sectors posted smart gains. The PSU bank index which rose 6% yesterday recorded huge gains for the second day in a row led by privatisation hopes. In the broader market, Non-Life Insurers & Paper stocks saw keen interest among investors.
Market remained in the mood for consolidation for the third day, impacted by negative cues from Asian markets. Globally, markets are showing weakness due to spike in US bond yield while improving corporate earnings and continued inflow of foreign funds is providing support to the domestic market. Bearish rally in the market was led by private banks and auto stocks while PSU Banks continued its outperformance on hopes of privatisation.
At close, the Sensex was down 379.14 points or 0.73% at 51,324.69, and the Nifty was down 89.90 points or 0.59% at 15,119. About 1609 shares have advanced, 1316 shares declined, and 151 shares are unchanged.
Bajaj Finance, Nestle, Kotak Mahindra Bank, M&M and Shree Cements were among major losers on the Nifty, while gainers included ONGC, GAIL, BPCL, IOC and NTPC.
On the sectoral front, PSU Bank rose 5 percent and IT, Metal and Energy indices gained 1-2 percent, while auto index slipped 1 percent.
Fitch Ratings has upgraded Singapore-based Jubilant Pharma Limited's (JPL) Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BB' from 'BB-' and affirmed its senior unsecured rating and the rating on its senior unsecured notes at 'BB'. The outlook is stable.
RailTel Corporation of India, a Mini Ratna central public sector enterprise and information & communications technology (ICT) infrastructure provider, will close its initial public offering on February 18.
The Rs 819-crore offer has subscribed 19.5 times as the issue received bids for 119.3 crore equity shares against IPO size of over 6.11 crore shares, the subscription data available on the exchanges showed.
Indian stock indices turned negative, with Sensex and Nifty trading with notable losses. Domestic optimism was influenced by pessimistic hints from other Asian markets.The traders are advised to refrain from building a new buying position until further improvement and breakout of 15,370.
On valuations parse at upper price band (Rs 94), the issue is asking for market cap Rs 3017 crore with PE (annualised FY21) 33x and P/BV stands at 2x which seems to be fairly priced.
Hence, looking at the faster digital transformation of Indian Railways and future growth prospects, we recommend investors to ‘subscribe for listing gain” only.
